Delco lawmakers mixed on Gov. Corbett's budget plans

By DANIELLE LYNCH

Tuesday, February 5, 2013

It's that time of the year again.

Gov. Tom Corbett rolled out his 2013-14 budget proposal Tuesday which includes pension reform and a call for privatization of the state's liquor store system. Now that legislators know what's on the governor's mind, they can get to work on crafting the budget.

Overall, the budget for the fiscal year 2013-14 would set spending at more than $28.4 billion. The biggest increases in the nearly $800 million in new spending would come under education, health care for the poor, social services and prisons.

Corbett has warned that he might have to cut aid for crucial programs, such as public schools, unless his plan to change public pensions is adopted. Public schools would see an increase of $90 million, or more than 1 percent, while funding for higher education would remain level.

Delaware County legislators offered mixed reactions to the plan.

House Appropriations Majority Chairman Bill Adolph, R-165, of Springfield, said he believes the total $28.4 billion budget figure will be sustainable. Adolph applauded the governor for taking a step toward reducing the waiting lists for individuals with intellectual disabilities -- something he said legislators took the lead on last year.

Adolph added that there will be level funding for higher education and state grants for higher education. In addition to education, there are increases in the Department of Public Welfare budget and additional funding toward public safety, which includes a potential of 290 new state troopers.

Adolph pointed out how the state lost about $3 billion in federal stimulus funds a few years ago, but has been able to put together a balanced budget without raising state taxes on Pennsylvanians the past two years. He believes legislators will pass an on-time budget again this year. In addition, about 100,000 private sector jobs have been added in the state and about 2,200 jobs were saved at the three refineries in this area, he said.

Part of Corbett's plan is to privatize the state liquor system. He said the $1 billion in proceeds would go toward the creation of a Passport for Learning Block Grant and will focus on four areas: school safety; enhanced early education programs; individualized learning; and science, technology, engineering and mathematics courses and programs.

Adolph said he is supportive of privatizing the liquor system.

"We'll join 48 other states by getting out of the liquor business," he said, adding that he believes it's a good idea to put about $1 billion of the proceeds toward education.

"My disappointment is in what (Corbett) fails to talk about," said state Rep. Greg Vitali, D-166, of Haverford, who is chairman of the House Environmental Resources and Energy Committee. "The governor didn't utter the word climate change in his remarks, nor has he during his first two years in office. In a state that produces a full 1 percent of the world's greenhouse gasses, this is nothing short of irresponsible."

State Sen. Ted Erickson, R-26, of Newtown, raised some concerns about Corbett's plan to privatize the state liquor store system.

"If you sell an asset, you should make sure the proceeds are maintained over a longer period of time," he said.

Erickson said he was concerned about what would happen in four years when the $1 billion dried up. He said the state faced a similar dilemma when the federal stimulus dollars were depleted a few years ago. Erickson suggested that the $1 billion from the liquor system be invested and the interest from the investment be appropriated to support ongoing education programs.

Erickson said legislators should consider raising new money by allowing bars and taverns to operate small games of chance with a percentage of the proceeds going to the state.

He estimated this would generate $200 million to $300 million a year that could go toward the education system. Another problem with privatizing the state's liquor system, he said, is "it will literally put small mom-and-pop (shops) out of business."

Vitali and state Rep. Thaddeus Kirkland, D-159, of Chester, both said they do not favor the privatization of liquor stores.

Kirkland argued that the governor contradicted himself by saying he won't raise taxes. He was referring to how Corbett wants to phase-in higher wholesale fuel taxes over five years, while partially offsetting the increase to consumers by peeling 2 cents off the per-gallon taxes that motorists pay at the pump.

Longtime state Rep. Nick Micozzie, R-163, of Upper Darby, said he was impressed that the budget includes an increase for education funding, "which my efforts have been directed toward for a long time." Micozzie, a member of the House Transportation Committee and chairman of the Insurance Committee, said he is pleased the governor is addressing transportation issues.

State Rep. Joe Hackett, R-161, of Ridley Township, noted that the governor's budget proposal "is merely a proposal and now the ball is in our court."

Hackett said he was encouraged by what seems like revenues on the rise and predictions they will continue to be on the rise in the next cycle.

Hackett, a former longtime law-enforcement officer who is chairman of the Human Services Subcommittee on Drugs and Alcohol, said he is pleased more money is going toward public safety and human services programs.

Hackett does have concerns about privatization of the lottery system and privatization of liquor store system and wants to examine both of them more closely.

Attempts to reach all other state legislators from Delaware County for comment were unsuccessful Tuesday.